Overview

• The MCD order effective July 29 eliminates standalone factory licences under sections 416 and 417 of the Delhi Municipal Corporation Act.
• Micro, small and medium enterprises can now use MSME Udyam registration certificates as their factory licence while larger units rely on GNCTD or DSIIDC allotment letters or lease deeds.
• Licence fees are restructured to a fixed five percent of annual property tax, replacing previous horsepower-based charges.
• The deemed licensing arrangement covers both GNCTD- or DSIIDC-recognised industrial areas and government-notified unplanned clusters.
• Existing licences remain valid until expiry while oversight of environmental and fire safety shifts to specialist agencies including the Delhi Pollution Control Committee and the Delhi Fire Service.